How Bonds Really React to Rising Rates

Unleashing the Superpower of Bonds

When interest rates rise, bonds get a bad rap. Watch to see why you should think twice before bailing on bonds.

When interest rates rise, bonds get a bad rap. Watch this video to see why you should think twice before bailing on bonds.

Michael Crowell, VP, Director of Quantitative Research & Risk Analysis, Co-Director of Macro Strategies, Loomis, Sayles & Company, explains bond basics and how income return can help protect against the occasional storm of rising interest rates and compound over time.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

Interest rate risk is a major risk to all bondholders. As rates rise, existing bonds that offer a lower rate of return decline in value because newly issued bonds that pay higher rates are more attractive to investors.

This material is provided for informational purposes only and should not be construed as investment advice. The analysis and opinion expressed represent the subjective views of Michael Crowell and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.

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